ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, January 23, 1996 TAG: 9601230080
SECTION: BUSINESS PAGE: B5 EDITION: METRO
DATELINE: ARLINGTON, VA.
SOURCE: ASSOCIATED PRESS
USAir Group Inc. on Monday reported its first fourth-quarter profit since 1988, helped by higher ticket prices and successful cost-cutting measures.
The Arlington, Va.-based carrier earned $60.3 million, or 61 cents a share, in the fourth quarter ended Dec. 31. During the same period a year ago, the carrier lost $322 million, or $5.63 a share.
Sales for the quarter were $1.85 billion, up from $1.68 billion a year ago.
The 1994 results included a one-time charge of $186.8 million.
Analysts said the results were better than expected but warned that USAir's high operating costs - the highest in the industry - and its $3 billion in long-term debt remain threats to the company.
``The big risks: an exorbitant cost structure and lofty wages,'' said Steve Lewin, an airline industry analyst for Gruntal & Co. in New York.
USAir stock rose 75 cents to close Monday at $15.75 on the New York Stock Exchange.
While the number of passengers was down slightly from 1994, USAir benefited from a year without price wars among major carriers to raise its fares.
``Late last spring, USAir began restructuring and getting rid of unprofitable routes, but it has been operating in a good economic environment and the economy has been stable,'' said USAir spokesman Richard Weintraub. ``The industry also behaved itself - no outrageous pricing.''
As a result of its downsizing, USAir cut its operating expenses by 11.8 percent for the fourth quarter and 4.9 percent for the year.
The biggest savings came in aircraft rent, which fell 52 percent for the quarter, from $204 million in 1994 to $97.5 million, and 23.7 percent for the year.
For 1995, the carrier earned $119.3 million, or 55 cents a share, compared to a loss of $684 million, or $12.73 a share, in 1994.
Sales were $7.47 billion, up from $6.99 billion in 1994.
LENGTH: Short : 44 linesby CNB